Benifits and Uses of Bridging Finance

Stress free application, speedy access to funds and flexible lending criteria make a bridging loan the number one option where time is of the essence. Bridging finance is largely used to quite literally bridge a gap in any transaction or situation where longer term funding cannot be arranged in time or is not required. Although predominantly considered a property financing solution, immediate liquidity released through a bridging loan (secured against property) can be used for any legal purpose, and can therefore open up an array of opportunities. Our none status bridging loans mean that straight forward funding is also available to the self employed (no accounts necessary), and those with adverse credit history, including CCJ's, Arrears, Discharged Bankrupts and IVA's.

Below are just a few common scenarios where bridging loans regularly ‘open doors’.

Property investment and development finance

A bridging loan can enable property investors and developers to capitalise on lucrative opportunities where the given timescale is too short to arrange other finance and the opportunity may other wise be lost. Where additional security is available or the property is purchased at below its market value 100% of the purchase price can be loaned, meaning no deposit! The speed at which a bridging loan can complete affords a buyer many of the advantages of a cash buyer and can put them in a stronger negotiating position. A bridging loan can allow investors to carry out refurbishment work or let a property, in order to secure a more favourable long term mortgage than may be possible at the initial purchase stage. Funds up to a pre-agreed limit can be drawn down as and when necessary throughout a development, this can reduce interest costs considerably. We also have access to some of the most innovative commercial mortgage products available today.*

Auction finance

Buying property at auction continues to gain popularity with both business and domestic buyers. A bridging loan is the ideal solution to enable an auction purchase (10% deposit and completion within 28 days), and can allow buyers the time to carry out refurbishment work or let a property, in order to secure a more favourable long term mortgage than may initially be possible. We can also accommodate all of your commercial mortgage requirements.

Chain Breaking

When you’ve found the home of your dreams, only to find yourself caught up in the housing chain, a bridging loan can allow you to break the chain by raising funds against either your new or existing property until such time as you are able to complete on the sale of your existing property.

Business Opportunities

Business acquisition and expansion opportunities can be financed through a bridging loan, and as this will be secured against existing property or property being acquired, no accounts, projections, business plan or meetings with bank managers are required and funds can be available immediately, allowing you to seize that opportunity. We also work with some of the most innovative commercial mortgage lenders in the market.

Tax Demands, Bankruptcy, Insolvency

A bridging loan can provide businesses and individuals who have access to equity in property (owned directly or otherwise), with a rapid source of capital to alleviate cash flow shortages, or settle at short notice any unforeseen/unexpected financial liabilities, such as; tax liabilities, bankruptcy, insolvency, inheritance tax and probate delays etc. This can aid corporate recovery, and remove the need for inherited property to be sold under disadvantageous circumstances, such as the wrong time of year etc.